Renewable energy charge
The renewable energy charge is a fee through which electricity consumers finance subsidies for renewable energy.
The renewable energy charge is a cost for financing subsidies for electricity produced from renewable sources or through efficient CHP mode and distributed to the grid, the rates for which are set out in the Electricity Market Act. The renewable energy charge is separated from the network fees and thus is paid by all end consumers in Estonia in proportion to the volume of network services they consume and electricity quantities consumed through direct lines.
The renewable energy charge is listed separately on electricity bills so that electricity consumers can see exactly how much is paid in subsidies for renewable energy and efficient CHP production. VAT is added to the renewable energy charge.
Under the Electricity Market Act, the authority responsible for calculating the renewable energy charge is Elering, which publishes its assessment of the amounts needed to finance the subsidies on its website by 1 December of each year, based on forecasts submitted by network operators, line possessors, electricity producers using renewable energy and CHP sources, and consumers connected to the Elering electricity network. Based on this assessment, Elering sets the amount that needs to be paid to finance the subsidy from network services consumed and for each kWh of electricity consumed through producers’ lines, taking account of any excess funds or shortfalls from the preceding 12 months, as well as reasonable expenses for administering the subsidies.
Network operators and line possessors send Elering (preliminary) data on the volume of network services provided as well as distributed through direct lines for the previous month by the fifth day of the following month. On the basis of the submitted data (or in the absence of data, on the basis of forecasts), Elering submits an invoice for subsidy financing costs to network operators and line possessors, which must be paid by the 14th day of the month, regardless of whether consumers have paid the invoice for subsidy financing costs.
Network operators, direct line possessors and consumers connected to the Elering electricity network send Elering their forecasts for the following year’s network service volume provision by 1 November every year.
Rate of renewable energy charge in 2024
- Renewable energy charge: 1.05 euro cents/kWh
- VAT: 22%
- Total: 1.28 euro cents/kWh
The calculation of the renewable energy charge (€/kWh) takes place using the following formula:
The planned amount of support is the amount of subsidies expected to be paid out based on the production forecast for the next period, plus expenses on administering the subsidies in the previous 12 months.
The balance of the previous period is the balance, at the time at which the charge was calculated (as of 31 October) of amounts overpaid or underpaid to producers, compared to the sum of the renewable energy charges collected from network operators and consumers, plus/minus interest received/paid monthly.
Statistical transfer revenue is net income from statistical transfer transactions.
End consumption forecast is the anticipated end consumption of electricity in Estonia expected to be billed by network operators and line possessors, not including network losses and power plants’ own consumption.
The following are taken into consideration in calculating the charge
- The forecast for electricity produced from renewable energy and supported is 1649 GWh and the forecast for electricity produced in efficient co-generation mode and supported is 93 GWh. The forecasted support for electricity produced from renewable energy sources is 88,5 million euros and 3 million euros for power produced in efficient co-generation mode. The cost of administering subsidies from the previous period, 1,05 million euros, is added to the sum.
- The amounts of renewable energy subsidies break down as follows: 35 per cent will be spent on supporting wind turbines; 33 per cent on supporting electricity generated from biomass and biogas; 32 per cent on supporting solar energy.
- As at 31 October 2023, income from renewable energy charges and statistical transfer revenues have been altogether 12,6 million euros more than the subsidies paid out and the state allocations have been received. The balance of the period will decrease the planned subsidy expenditure in 2024.
- The consumption forecast for the next calendar year is 7 626 GWh, which is on the same level as the actual consumption in the last calculation period.
Renewable energy charge per year
| year | charge, cents/kWh | VAT | charge with VAT, cents/kWh |
|---|---|---|---|
| 2023 II | 1,13 | 20% | 1,36 |
| 2023 I | 1,24 | 20% | 1,49 |
| 2022 | 1,13 | 20% | 1,36 |
| 2021 | 1,13 | 20% | 1,36 |
| 2020 | 1,13 | 20% | 1,36 |
| 2019 | 1,04 | 20% | 1,25 |
| 2018 | 0,89 | 20% | 1,07 |
| 2017 | 1,04 | 20% | 1,25 |
| 2016 | 0,96 | 20% | 1,15 |
| 2015 | 0,89 | 20% | 1,07 |
| 2014 | 0,77 | 20% | 0,92 |
| 2013 | 0,87 | 20% | 1,04 |
| 2012 | 0,97 | 20% | 1,16 |
Overview of monthly obligations
- 5th day of the month (working day) – distribution networks and line possessors send Elering data on total volume of network service provision and electricity consumption through direct lines provided to consumers (including own consumption) in the previous calendar month in free format via email to resupport@elering.ee.
- 7th day of the month (working day) – Based on the data submitted by network operators and line possessors, Elering sends an invoice to the network operators and line possessors which indicates the volume of network services provided to consumers and the corresponding sum needed for subsidy financing. If the network operator or line possessor has not submitted the corresponding information by the deadline, the invoice is submitted based on forecast data. Corrections for the month prior are also included in the invoice if the actual information is received later.
- 14th day of the month (working day) – the network operator and line possessor pay the invoice for subsidy financing regardless of whether consumers have paid for subsidy financing.
- 20th day of the month – Network operators and line possessors submit adjusted, actual network service volumes and consumed electricity amounts supplied via producer’s lines.
- 7th day of the following month (working day) – based on the adjusted network service volumes, Elering calculates the size of corrections and adds this to or subtracts this from the following month’s invoice.
Summary of data submitted monthly to Elering:
| Date | Informationave | Email address |
|---|---|---|
| 5th working day | Supplied network service and electricity consumed via direct line (MWh) | resupport@elering.ee |
| 20th working day | Actual supplied network service and electricity consumed via direct line (MWh) |
Rate of renewable energy charge in 2024
- Renewable energy charge: 1.05 euro cents/kWh
- VAT: 22%
- Total: 1.28 euro cents/kWh
The calculation of the renewable energy charge (€/kWh) takes place using the following formula:
The planned amount of support is the amount of subsidies expected to be paid out based on the production forecast for the next period, plus expenses on administering the subsidies in the previous 12 months.
The balance of the previous period is the balance, at the time at which the charge was calculated (as of 31 October) of amounts overpaid or underpaid to producers, compared to the sum of the renewable energy charges collected from network operators and consumers, plus/minus interest received/paid monthly.
Statistical transfer revenue is net income from statistical transfer transactions.
End consumption forecast is the anticipated end consumption of electricity in Estonia expected to be billed by network operators and line possessors, not including network losses and power plants’ own consumption.
The following are taken into consideration in calculating the charge
- The forecast for electricity produced from renewable energy and supported is 1649 GWh and the forecast for electricity produced in efficient co-generation mode and supported is 93 GWh. The forecasted support for electricity produced from renewable energy sources is 88,5 million euros and 3 million euros for power produced in efficient co-generation mode. The cost of administering subsidies from the previous period, 1,05 million euros, is added to the sum.
- The amounts of renewable energy subsidies break down as follows: 35 per cent will be spent on supporting wind turbines; 33 per cent on supporting electricity generated from biomass and biogas; 32 per cent on supporting solar energy.
- As at 31 October 2023, income from renewable energy charges and statistical transfer revenues have been altogether 12,6 million euros more than the subsidies paid out and the state allocations have been received. The balance of the period will decrease the planned subsidy expenditure in 2024.
- The consumption forecast for the next calendar year is 7 626 GWh, which is on the same level as the actual consumption in the last calculation period.
Renewable energy charge per year
| year | charge, cents/kWh | VAT | charge with VAT, cents/kWh |
|---|---|---|---|
| 2023 II | 1,13 | 20% | 1,36 |
| 2023 I | 1,24 | 20% | 1,49 |
| 2022 | 1,13 | 20% | 1,36 |
| 2021 | 1,13 | 20% | 1,36 |
| 2020 | 1,13 | 20% | 1,36 |
| 2019 | 1,04 | 20% | 1,25 |
| 2018 | 0,89 | 20% | 1,07 |
| 2017 | 1,04 | 20% | 1,25 |
| 2016 | 0,96 | 20% | 1,15 |
| 2015 | 0,89 | 20% | 1,07 |
| 2014 | 0,77 | 20% | 0,92 |
| 2013 | 0,87 | 20% | 1,04 |
| 2012 | 0,97 | 20% | 1,16 |
Overview of monthly obligations
- 5th day of the month (working day) – distribution networks and line possessors send Elering data on total volume of network service provision and electricity consumption through direct lines provided to consumers (including own consumption) in the previous calendar month in free format via email to resupport@elering.ee.
- 7th day of the month (working day) – Based on the data submitted by network operators and line possessors, Elering sends an invoice to the network operators and line possessors which indicates the volume of network services provided to consumers and the corresponding sum needed for subsidy financing. If the network operator or line possessor has not submitted the corresponding information by the deadline, the invoice is submitted based on forecast data. Corrections for the month prior are also included in the invoice if the actual information is received later.
- 14th day of the month (working day) – the network operator and line possessor pay the invoice for subsidy financing regardless of whether consumers have paid for subsidy financing.
- 20th day of the month – Network operators and line possessors submit adjusted, actual network service volumes and consumed electricity amounts supplied via producer’s lines.
- 7th day of the following month (working day) – based on the adjusted network service volumes, Elering calculates the size of corrections and adds this to or subtracts this from the following month’s invoice.
Summary of data submitted monthly to Elering:
| Date | Informationave | Email address |
|---|---|---|
| 5th working day | Supplied network service and electricity consumed via direct line (MWh) | resupport@elering.ee |
| 20th working day | Actual supplied network service and electricity consumed via direct line (MWh) |